Hi, my company sells services in several states. Not all services are taxable in all states so my invoices may contain taxable and non-taxable items.

However an item that is taxable in Texas may not be taxable in Arkansas. Is there a way to set up the items as taxable only for customers in the states they are taxable in and set them as non-taxable for customers in states that do not tax those services.

We work in 5 states, and the taxable items vary based on the laws of each state.

Thank you in advance for your help. I am setting up a new company and would like to get it right from the start.

Hi, my company sells services in several states. Not all services are taxable in all states so my invoices may contain taxable and non-taxable items.

However an item that is taxable in Texas may not be taxable in Arkansas. Is there a way to set up the items as taxable only for customers in the states they are taxable in and set them as non-taxable for customers in states that do not tax those services.

We work in 5 states, and the taxable items vary based on the laws of each state.

Thank you in advance for your help. I am setting up a new company and would like to get it right from the start.

in general, a taxable eligibility is determined based on the location of the seller and the buyer.
When you setup the item, just set it up as taxable item.
When setup the customer, then you will determine whether they have to pay sales tax or not. That setting is on the "Sales Tax Settings" tab in the customer setup. You will find 2 field: Tax code and Tax Item.